Additionally, two of the bills (HR 1945 and HR 2146) would
also modify Ongoing Reports Regarding Market Conditions For Terrorism Risk
Insurance {§108(e)(2)}. The table below shows the date in the current law that
would be changed and what change each bill would make.

Current

HR 508

HR 1945

HR 2146

§102(11)(G)

2014

2019

2024

2024

§103(e)(7)(E)(i)(III)

2017

2024

2024

2027

§108(a)

2014

2019

2024

2024

§108(e)(2)

2013

2013, 2017

2020, and

2023

2013, 2017

2020, and

2023

Problems

The current bill corrects one of the problems that I noted
in HR 1945. It changed the timing of the mandatory recoupment of premium until
three years after the date of the last potentially covered terrorist attack.
The language in HR 1945 could potentially have required the recoupment of
premiums before monies were actually paid out for an attack that occurred in
2024.

This bill has the same problem at the previous two bills in
that it does not provide for any intermediate recoupment dates for any
terrorist attacks that occur between 2012 and the new termination date. The table
below shows how the current language provides for intermediate recoupment dates

For terrorist attacks

Recoupment Date

Before 12-31-10

9-30-12

01-01-11 to 12-31-11

9-30-12 Partial

9-30-17 Remainder

After 01-01-12

9-30-17

A staggered recoupment period for the out years could be
structured like this:

• Attacks in 2013 and 2014 would
have funds recouped by 2017;

• Attacks in 2015 and 2016 would
have funds recouped by 2019;

• Attacks in 2017 and 2018 would have
funds recouped by 2021;

• Attacks in 2019 and 2020 would
have funds recouped by 2023;

• Attacks in 2021 and 2022 would
have funds recouped by 2025; and

• Attacks in 2023 and 2024 would
have funds recouped by 2027.

Moving Forward

Of the three bills currently dealing with an extension of
TRIA, it still looks like HR 508 will have the best chance to move forward
through the legislative process. It has 41 sponsors (vs 20 for this bill) and
HR 508 has more bipartisan support, looking at the affiliation of the sponsors.
I don’t think that there would be any significant opposition to this bill in a
floor vote in either chamber. I am a little surprised that there hasn’t been a
hearing before the House Financial Services Committee on HR 508 yet.

About Me

I spent 15 years in the US Army as an Infantry NCO. After getting out of the Army I started working in the chemical industry, getting my BSc Chemistry degree while working as a technician. I spent 12 years working as a process chemist in a specialty chemical company. Most recently I worked as a QA/R&D Manager in a specialty chemical manufacturing facility. Currently I am working as a freelance writer.